Ken Griffin’s Citadel is set to return approximately $5bn of profits to hedge fund investors, reducing assets under management to around $67bn, according to a report by CNBC citing an unnamed person familiar with the matter.

The distribution represents only part of the profits generated by the firm this year, the source said, declining to provide further detail as the information is not public. Citadel reportedly declined to comment.

The move comes as the firm’s flagship multi-strategy fund posts its weakest annual performance since 2018. The fund was up 9.3% through 18 December, according to people familiar with the results, a marked slowdown compared with recent years of outsized gains.

Citadel has historically required investors to redeem profits annually, a practice designed to manage capital levels and preserve performance. Last year, however, the firm shifted approach, allowing clients to choose whether to withdraw profits following a roughly 15% gain. Most investors opted to keep capital invested, reflecting continued confidence in the platform.

The return of capital this year suggests a recalibration as market conditions become more challenging for large multi-strategy hedge funds, particularly those operating at scale. Citadel remains one of the world’s largest hedge fund firms, with diversified strategies spanning equities, fixed income, commodities and quantitative trading.